Boomerang gifting platform grows from Facebook to e-publishers

April 23, 2013|By Wailin Wong | Tribune reporter

A screen grab of the Boomerang gifting Web site.

Boomerang, a local startup whose technology allows Facebook friends to send each other presents, has introduced a platform for online publishers to reward consumers with gift cards from national brands such as Ghirardelli and Shutterfly.

Boomerang launched in August with $1 million in seed funding from Chicago-based venture capital firm Lightbank. It initially focused on letting Facebook friends buy gifts from local merchants, such as digital vouchers for nearby coffee shops or hang gliding excursions. Chief Executive Zach Smith said that business began shifting to national brands because "it was a lot easier to scale and more demanded by our users."

The new platform, called Boomerang Rewards, is an extension of the company's existing relationships with big brands. The startup is partnering with online publishers such as survey companies, giving them a way to reward their users. For example, consumers who completes an online survey will be sent to a Boomerang-powered page where they can choose a virtual gift card to redeem at merchants such as Ghirardelli, Shutterfly and ModCloth, an online retailer of vintage-inspired women's apparel. The gift cards are worth between $5 and $20.

Smith said Boomerang is looking to work with "anyone that relies on advertising as a way of making money." Online businesses might want to provide gift cards as rewards for signing up for an email list, registering an event or making a donation, he said.

"Any type of action you want to incentivize, you can get much higher conversion by offering people a gift card on the tail end," Smith said.

Boomerang makes money off this platform by collecting a share of the revenue from purchases made with the gift cards.